BP Eliminating 7,700 Jobs (5% Of Its Workforce) Because It Made Noises About Greener Energy Sources

[hatrack]

BP is to cut thousands of jobs from its global workforce, amounting to 5% of its staff, in an effort to save billions in costs to appease its worried shareholders. The oil company told staff on Tuesday that it would cut 4,700 jobs and scrap another 3,000 contractor positions, after its chief executive promised to reduce the company’s costs by at least $2bn (£1.6bn) by the end of 2026.

Murray Auchincloss has come under pressure from shareholders to improve BP’s returns amid growing dissatisfaction over the strategy set by his predecessor, Bernard Looney, before he was ousted from the top job for failing to disclose personal relationships with colleagues. In an internal memo to staff, first reported by Reuters, Auchincloss said he understood and recognised the “uncertainty this brings for everyone whose job may be at risk” and also “the effect it can have on colleagues and teams”.

EDIT

At the same time, BP revealed a worrying trading update for the final quarter of last year before its full-year results next month. The update warned that oil production for the last quarter would be lower than in the previous quarter, while the profit margins from its refining business would be “weaker” and its oil trading performance would be “weak”. BP has fallen out of favour with investors since Looney set out a plan to slash its oil and gas production in favour of spending billions on green energy projects. Under Auchincloss, the company has begun to dilute its climate pledges, but investors remain concerned over the returns BP can expect from its big-ticket green projects, including multibillion-pound plans to develop offshore windfarms off the UK coast.

BP’s shares have fallen by about 7% in the past year, while its rivals Shell, Chevron and ExxonMobil – which are pursuing higher oil and gas production – have seen their market values climb by 8% or more. The company was worth about £110bn before Looney was named as the next chief executive in late 2019, and now has a market capitalisation of less than £68bn.

Ed. - Gee, I wonder which parts of the business they'll cut/eliminate?

EDIT/END

https://www.theguardian.com/business/2025/jan/16/bp-to-cut-4700-jobs-3000-contractor-roles-costs